Security Deposit Law

Maine Security Deposit Law

What Maine landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.

Verified as of June 15, 2026

This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.

Deposit cap

2 months' rent statewide; 1 month in Portland for covered units.

Interest

No interest required on security deposits in Maine.

Return deadline

30 days max under a written lease; 21 days for a tenancy at will.

How much can a landlord charge?

Maine caps residential security deposits at two months' rent: a lease or tenancy-at-will agreement 'may not require a security deposit equivalent to more than the rent for 2 months' (14 M.R.S. § 6032). In Portland, the city's rent control ordinance goes further — per the city's official Rent Control FAQ, 'Landlords may not require an amount more than one month of rent for a security deposit. (Sec. 6-223.2)' for units covered by the ordinance.

14 M.R.S. § 6032 · Portland, Me., Code of Ordinances ch. 6, § 6-223.2 (as summarized in the City of Portland's official Rent Control Ordinance FAQ)

Does the deposit earn interest?

Maine's security deposit chapter (14 M.R.S. ch. 710-A, §§ 6031-6039) contains no provision requiring landlords to pay interest on residential security deposits. Section 6038 governs how the deposit must be held, but it imposes no interest obligation.

14 M.R.S. ch. 710-A (§§ 6031-6039) · 14 M.R.S. § 6038

When must the deposit be returned?

With a written rental agreement, the landlord must return the deposit (or send a written statement itemizing the reasons for retaining any portion) 'within the time, not to exceed 30 days, stated in the agreement.' For a tenancy at will, the deadline is 'within 21 days after the termination of the tenancy or the surrender and acceptance of the premises, whichever occurs later.' Any itemized statement must be accompanied by payment of the difference between the deposit and the amount retained.

14 M.R.S. § 6033(2)

Does it need a separate account?

During the tenancy the deposit 'may not be treated as an asset to be commingled with the assets of the landlord' and must be held in a bank or other financial institution account that places it beyond the claims of the landlord's creditors (14 M.R.S. § 6038(1)). Upon request by a tenant — the duty is triggered by a tenant's request, not automatic — the landlord 'shall disclose the name of the institution and the account number where the security deposit is being held.' One escrow account may hold deposits for multiple tenants.

14 M.R.S. § 6038(1)

What are the penalties for violations?

Missing the § 6033 deadline forfeits the landlord's right to withhold any portion of the deposit. Wrongful retention makes the landlord 'liable for double the amount of that portion of the security deposit wrongfully withheld,' plus reasonable attorney's fees and court costs, and the landlord bears the burden of proving the withholding was not wrongful (§ 6034). Violating the separate-account rule entitles the tenant to the greatest of actual damages, $500, or one month's rent, plus costs and potentially attorney's fees (§ 6038(2)).

14 M.R.S. § 6033(3) · 14 M.R.S. § 6034 · 14 M.R.S. § 6038(2)

Local rules to know

Portland: for covered Portland rental units (Code of Ordinances ch. 6), security deposits are capped at one month's rent (Sec. 6-223.2) and rental application fees are prohibited (Sec. 6-223.1) — both confirmed verbatim in the City of Portland's official Rent Control Ordinance FAQ ('Landlords may not require an amount more than one month of rent for a security deposit. (Sec. 6-223.2)'). The one-month cap reaches a broad set of Portland rentals; check the current Portland Code of Ordinances and the city's Rent Control & Rental Housing Rights page (portlandmaine.gov) for the covered-unit definition before setting deposit terms. No other Maine municipality is known to impose a stricter deposit cap.

Key rules Maine landlords must follow

Two different return clocks: 30 days (written lease) vs. 21 days (tenancy at will)

A written rental agreement can set the return period, but it cannot exceed 30 days; with no written agreement (tenancy at will), you have only 21 days from termination or surrender-and-acceptance, whichever is later. If you retain any portion, you must send a written statement itemizing the reasons within the same window, with payment of the balance.

14 M.R.S. § 6033(2)

Never deduct for normal wear and tear

Section 6033(1) is categorical: a deposit 'shall not be retained for the purpose of paying for normal wear and tear.' You may retain amounts for damage beyond normal wear and tear, unpaid rent, unpaid utility charges the tenant owed directly to you, and storage/disposal costs for unclaimed property.

14 M.R.S. § 6033(1)-(2)

Hold the deposit in a protected, non-commingled account

Deposits must sit in a bank or financial institution account beyond the reach of your creditors (including a foreclosing mortgagee or bankruptcy trustee) and must never be commingled with your own assets. Upon request by a tenant, you must disclose the institution name and account number.

14 M.R.S. § 6038(1)

Tenants must give 7 days' notice before suing — but you carry the burden of proof

Before bringing a wrongful-retention action, the tenant must give you notice at least 7 days before filing — a final window to pay. In court, the burden is on the landlord to prove the withholding was not wrongful, and losing means double the wrongfully withheld amount plus fees and costs.

14 M.R.S. § 6034

Owner-occupied buildings of 5 or fewer units are exempt

The chapter 'shall not apply to any tenancy for a dwelling unit which is part of a structure containing no more than 5 dwelling units, one of which is occupied by the landlord.' If you live in your own small multifamily, the statutory deposit rules don't bind you — though following them is still good practice.

14 M.R.S. § 6037

Portland landlords face stricter local rules

For units covered by Portland's rent control ordinance, the city caps deposits at one month's rent (Sec. 6-223.2) and bans rental application fees (Sec. 6-223.1), per the city's official Rent Control FAQ. Verify your unit's coverage against the current Code of Ordinances before setting deposit terms.

Portland, Me., Code of Ordinances ch. 6, §§ 6-223.1, 6-223.2 (per the city's official Rent Control Ordinance FAQ)

Common mistakes — and what they cost

Applying the 30-day deadline to a tenancy at will (no written lease).

Tenancies at will get only 21 days. Missing it forfeits your right to withhold any portion of the deposit, and wrongful retention exposes you to double damages plus attorney's fees and costs.

14 M.R.S. §§ 6033(2)-(3), 6034(2)

Commingling the deposit with personal or business funds.

A court can award the tenant the greatest of actual damages, $500, or one month's rent, plus costs and potentially attorney's fees under § 6038(2).

14 M.R.S. § 6038

Deducting repainting or carpet-wear charges that are really normal wear and tear.

Retention for normal wear and tear is barred outright; in a tenant's suit you must prove the withholding was not wrongful, or pay double the wrongfully withheld portion plus fees.

14 M.R.S. §§ 6033(1), 6034(2)-(3)

Charging the state two-month maximum on a Portland unit covered by rent control.

Portland's ordinance caps deposits at one month's rent for covered units (Sec. 6-223.2); violations of the rent control article may be enforced as civil infractions under the city code.

Portland, Me., Code of Ordinances ch. 6, § 6-223.2 (per the city's official Rent Control Ordinance FAQ)

Refusing to tell a tenant where the deposit is held when they ask.

Upon request, you must disclose the institution name and account number; stonewalling is a § 6038 violation carrying the actual-damages/$500/one-month's-rent remedy.

14 M.R.S. § 6038(1)-(2)

Maine security deposit law — FAQ

How much can a landlord charge for a security deposit in Maine?

Up to two months' rent statewide (14 M.R.S. § 6032). In Portland, units covered by the city's rent control ordinance are capped at one month's rent under city code Sec. 6-223.2, per the city's official Rent Control FAQ.

How long does a Maine landlord have to return a security deposit?

With a written lease, the period stated in the agreement, which cannot exceed 30 days. For a tenancy at will (no written lease), 21 days after termination or surrender-and-acceptance of the premises, whichever is later. Any amount you keep must be explained in a written itemized statement sent within the same window, along with the remaining balance.

Do Maine landlords have to pay interest on security deposits?

No. Maine's security deposit chapter (14 M.R.S. ch. 710-A) has no interest requirement — but the deposit must be held in a protected bank account and never commingled with your own funds.

What can I deduct from a security deposit in Maine?

Damage beyond normal wear and tear, unpaid rent, unpaid utility charges the tenant was obligated to pay directly to you, and the cost of storing or disposing of unclaimed property. You can never deduct for normal wear and tear (14 M.R.S. § 6033(1)).

What happens if I miss Maine's deposit return deadline?

You forfeit the right to withhold any portion of the deposit (§ 6033(3)). If the retention is wrongful, the tenant can sue — after giving you 7 days' notice — for double the wrongfully withheld amount plus attorney's fees and costs, and you bear the burden of proving the withholding was justified (§ 6034).

Does Maine's security deposit law apply to owner-occupied buildings?

Not if the building has 5 or fewer dwelling units and you live in one of them — those tenancies are exempt from the entire chapter (14 M.R.S. § 6037).

This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.

Statute facts on this page were verified against the cited official sources on June 15, 2026.

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